HKMA Holds Base Rate at 4% Amid US Fed Decision

Hong Kong's base rate remains at 4% after the US Federal Reserve decided to keep its key interest rate unchanged.

The decision by the Hong Kong Monetary Authority (HKMA) on Thursday followed the Fed's fifth Federal Open Market Committee (FOMC) meeting this year, which concluded hours earlier.

US stock markets experienced a slump, with the Dow Jones falling 1.152 points or 2.2%, while the S&P 500 dropped 1.5% and Nasdaq decreased by 1.7% on Wednesday.

Fed Chairman Kevin Warsh emphasized that there is no soft inflation target, reiterating the Fed's explicit goal of keeping inflation at 2%.